Report: Amazon has room to slash Kindle Fire price aggressively

According to analysts, Amazon now has ample room to aggressively drop the price of the Kindle Fire tablet.

Cost of supplies has fallen to $133.80 since launch, says iSuppli, down from $185.60 in November of last year.

Memory prices have fallen significantly, and the display price has fallen, too.

Notes Brad Gastwirth of independent research firm ABR Investment Strategy: "Memory prices have been in free fall - with roughly a 50 percent price reduction in the past year. On the display side prices have also come down."

The Kindle Fire currently sells for $200, the same price as the recently launched Nexus 7, which has much more powerful specs.